Financial Qualifications and What they Mean

In the growing and ever changing world of financial planning, it's not easy to keep track of the qualifications that financial planners acquire. Constant ongoing education means that there are multiple levels of qualifications so we thought' we'd clarify what it all means for you:

Certified Financial Planner

This is the highest accredited qualification for financial planners and involves the first completing 8 Units of study to achieve the Diploma of Financial Services.  The CFP assessment process then involves a further 4 units of study, plus an assessment process and the production of a highly comprehensive financial plan to exacting standards and an examination.  The certification is only awarded after passing through this process and having at least 3 years of practical experience as an Authorised Representative of an AFS Licensee. Indeed, from January 2007, a Bachelor Degree will be a pre-requisite for entry into the CFP education program  Parkside is proud to have CFP's on their Adviser Staff with three other Advisers close to meeting their CFP Goal.

Diploma of Financial Planning

This now superseded qualification required the completion of 8 units of study including the Diploma of Financial Services pre requisites and:

FPA 1: Introduction to Financial Planning

FPA 2: Risk Management and Insurance Planning

FPA 3: Investment Planning

FPA 4: Planning and Retirement

FPA 5: Tax and Financial Planning Strategies

FPA 6: Contingency Planning

FPA 7: Client and Product Research

DFP 8: Financial Plan Construction and Review

From 2005, the Diploma of Financial Planning has been superseded by two national qualifications which are now available for the financial planning sector of the financial services industry. These are:

• Diploma of Financial Services (Financial Planning)
• Advanced Diploma of Financial Services (Financial Planning)

There have been new subjects and units added to the new curriculum to reflect recent changes in the Financial Services Regulation Legislation to encompass other financial professionals, not just financial planners. This too required a minimum of 4 units of study

Diploma of Financial Services

This is one of the pathways for eligibility as a Certified Financial Planner and is usually completed initially by newer entrants into the financial planning world. It comprises 4 modules of study which bring financial planners up to the ASIC RG 146 compliance requirement to commence the construction of Financial Plans (Statements of Advice).  Unless a planner is at the very least RG 146 compliant, he is not authorised to provide advice.

FPA 1: Introduction to Financial Planning

FPA 2: Risk Management and Insurance Planning

FPA 3: Investment Planning

FPA 4: Planning and Retirement

Advanced Diploma of Financial Services (Financial Planning)

The Advanced Diploma of Financial Services (Financial Planning) assumes that students have ASIC compliance and explores issues that add complexity to the financial planning process. The course is currently being added to the FPA Scope of Registration. A Diploma of Financial Services is the prerequisite for this course which takes up the next four modules including:

FPA 5: Tax and Financial Planning Strategies - not offered in semester 2, 2004.

FPA 6: Contingency Planning

FPA 7: Client and Product Research

FPA 8: Developing a Financial Plan

Graduate Diploma of Financial Planning

The Graduate Diploma in Financial Planning is a post-graduate diploma which complements particularly Bachelor degrees in Commerce, Economics, Finance and Accounting.  It provides the candidate with fundamental skills in financial planning, investment, risk management, and superannuation and taxation planning.  the Diploma provides the opportunity for such graduates to be qualified to advise clients.

Besides these qualifications, Parkside InvestorPlus staff, particularly planning staff, have procured other industry qualifications and accreditation in the areas of risk, superannuation and accounting.  Their credentials place them in an enviable position with a combined ability to meet all your planning, insurance and superannuation administration needs.